Baron Ltd makes a commercial cleaning compound known as Loomp. The direct materials and direct labour standards for one unit of Loomp follow _ Standard Price or Standard Rate Standard Cost Quantity or hours Direct La b0u r 0.2 hour During the most recent month, the foliowing activity was recorded a. 9,000 kg of materials were purchased at a cost of $5.20 per kg b. All of the material purchased was used to produce 4,000 units of Loomp c. A total of 750 hours of direct labour time was recorded at a total labour Required: 1. Compute the direct materials price and quantity variances for the 'r__n (11. ABC Company Is studying a project that would have a ve year life and require a $1,600,000 investmentin equipment. At the end of ve years, the project would terminate and the equipment would have no value left over. The project would provide net income each year as follows: Sales _ 2.8\"\"? less COGS ' 300.000 _ Gross Margin 2.500. . Less: Operating Expenses Advertising, Salaries and other fixed Salary Expense Amortization Total Expenses Net Income The company's discount rate is 18% 1) compute the net annual cash inflow from project - 2) compute the net present value of the project. Is it acceptablfei